Indiana Code 6-1.1-20-1.1. “Controlled project”
(1) A project for which the political subdivision reasonably expects to pay:
Terms Used In Indiana Code 6-1.1-20-1.1
- controlled project: means any project financed by bonds or a lease, except for the following:
Indiana Code 6-1.1-20-1.1
- debt service: means principal of and interest on bonds. See Indiana Code 6-1.1-20-1.2
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- lease: means a lease by a political subdivision of any project with lease rentals payable from property taxes that are exempt from the levy limitations of Indiana Code 6-1.1-20-1.3
- lease rentals: means the payments required under a lease. See Indiana Code 6-1.1-20-1.4
- project: means any project or purpose for which a political subdivision may issue bonds or enter into leases, including a sale-lease back of an existing building. See Indiana Code 6-1.1-20-1.7
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- property taxes: means a property tax rate or levy to pay debt service or to pay lease rentals, but does not include taxes allocated for an allocation area under Indiana Code 6-1.1-20-1.6
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(B) lease rentals;
from funds other than property taxes that are exempt from the levy limitations of IC 6-1.1-18.5 or (before January 1, 2009) IC 20-45-3. A project is not a controlled project even though the political subdivision has pledged to levy property taxes to pay the debt service or lease rentals if those other funds are insufficient.
(2) Subject to subsection (b), a project that will not cost the political subdivision more than the lesser of the following:
(A) An amount equal to the following:
(i) In the case of an ordinance or resolution adopted before January 1, 2018, making a preliminary determination to issue bonds or enter into a lease for the project, two million dollars ($2,000,000).
(ii) In the case of an ordinance or resolution adopted after December 31, 2017, and before January 1, 2019, making a preliminary determination to issue bonds or enter into a lease for the project, five million dollars ($5,000,000).
(iii) In the case of an ordinance or resolution adopted in a calendar year after December 31, 2018, making a preliminary determination to issue bonds or enter into a lease for the project, an amount (as determined by the department of local government finance) equal to the result of the maximum levy growth quotient determined under IC 6-1.1-18.5-2 for the year multiplied by the amount determined under this clause for the preceding calendar year.
The department of local government finance shall publish the threshold determined under item (iii) in the Indiana Register under IC 4-22-7-7 not more than sixty (60) days after the date the budget agency releases the maximum levy growth quotient for the ensuing year under IC 6-1.1-18.5-2.
(B) An amount equal to the following:
(i) One percent (1%) of the total gross assessed value of property within the political subdivision on the last assessment date, if that total gross assessed value is more than one hundred million dollars ($100,000,000).
(ii) One million dollars ($1,000,000), if the total gross assessed value of property within the political subdivision on the last assessment date is not more than one hundred million dollars ($100,000,000).
(3) A project that is being refinanced for the purpose of providing gross or net present value savings to taxpayers.
(4) A project for which bonds were issued or leases were entered into before January 1, 1996, or where the state board of tax commissioners has approved the issuance of bonds or the execution of leases before January 1, 1996.
(5) A project that:
(A) is required by a court order holding that a federal law mandates the project; or
(B) is in response to a court order holding that:
(i) a federal law has been violated; and
(ii) the project is to address the deficiency or violation.
(6) A project that is in response to:
(A) a natural disaster;
(B) an accident; or
(C) an emergency;
in the political subdivision that makes a building or facility unavailable for its intended use.
(7) A project that was not a controlled project under this section as in effect on June 30, 2008, and for which:
(A) the bonds or lease for the project were issued or entered into before July 1, 2008; or
(B) the issuance of the bonds or the execution of the lease for the project was approved by the department of local government finance before July 1, 2008.
(8) A project of the Little Calumet River basin development commission for which bonds are payable from special assessments collected under IC 14-13-2-18.6.
(9) A project for engineering, land and right-of-way acquisition, construction, resurfacing, maintenance, restoration, and rehabilitation exclusively for or of:
(A) local road and street systems, including bridges that are designated as being in a local road and street system;
(B) arterial road and street systems, including bridges that are designated as being in an arterial road and street system; or
(C) any combination of local and arterial road and street systems, including designated bridges.
(b) This subsection does not apply to a project for which a public hearing to issue bonds or enter into a lease has been conducted under IC 20-26-7-37 before July 1, 2023. If:
(1) a political subdivision’s total debt service tax rate is more than forty cents ($0.40) per one hundred dollars ($100) of assessed value; and
(2) subsection (a)(1) and subsection (a)(3) through (a)(9) are not applicable;
the term includes any project to be financed by bonds or a lease, including a project that does not otherwise meet the threshold amount provided in subsection (a)(2). This subsection expires December 31, 2025. For purposes of this subsection, a political subdivision’s total debt service tax rate does not include a tax rate imposed in a referendum debt service tax levy approved by voters.
As added by P.L.25-1995, SEC.40. Amended by P.L.178-2002, SEC.30; P.L.2-2006, SEC.51; P.L.146-2008, SEC.188; P.L.106-2012, SEC.1; P.L.40-2014, SEC.5; P.L.233-2015, SEC.18; P.L.246-2017, SEC.1; P.L.60-2020, SEC.1; P.L.159-2020, SEC.40; P.L.32-2021, SEC.10; P.L.236-2023, SEC.35; P.L.239-2023, SEC.6; P.L.9-2024, SEC.170; P.L.136-2024, SEC.22.